Last year, less than two hours after we circulated a newsletter announcing that Baker Tax Law was turning 10, I received an email from two of my tax partners announcing that they were quitting without notice. They then spent the rest of the day calling clients.
It was probably the single most stressful and disheartening day of my legal career.
But, as my clients do every day, I had a choice to make: throw in the cards, or stop feeling sorry for myself and get to work.
For the following weeks, I came into the office at 5 a.m. and went home at 8 p.m. I wanted to do everything in my power to support the clients who chose to stay.
Then things started to turn around.
Brian Rogers, a Latham lateral and Stanford Law graduate, joined the firm. A month later, we added Austin Stack, a Harvard Law graduate, as the head of our compensation and benefits group. In August, Jason Sacks joined us from Wilson Sonsini. I cannot adequately express how grateful I am that these guys believed in the firm and were willing to help build what came next.
So here we are: Baker Tax Law 2.0.
What did I learn from the experience?
• The right team matters more than almost anything else. Technical ability is important, but character, judgment, and shared values matter even more. The last year taught me that who you build with is every bit as important as what you build.
• If you want people to act like owners, make them owners. Every full-time attorney from senior associate to partner is a profits interest holder. We want everyone rowing in the same direction and invested in the firm’s success.
• Good systems matter. We added a 30-day notice requirement to our employment agreements. Most people will do the right thing, but clear expectations protect everyone.
• Clients ultimately want one thing: excellent work delivered efficiently. Some clients were extraordinarily loyal during a difficult period, and I will never forget it. But the firm survived and grew because we continued to do good work for the people who trusted us.
• Adversity has a way of clarifying priorities. It reminded me that reputations are built over years, relationships matter, and there is no substitute for showing up every day and doing the work.
Eleven years in, I am more optimistic about the future of Baker Tax Law than I have ever been. I am grateful to our clients, grateful to our team, and excited for what comes next.
Mike Baker frequently advises with respect to matters affecting start-ups. He possesses a breadth and depth of experience in tax and employee benefits & compensation law that spans multiple decades. For additional information, please contact mike@mbakertaxlaw.com.